Northeast Ohio
Real Estate
January 28, 2022
Happy Friday!
I hope you and your family are staying warm in these wintry conditions!

It's been an eventful two weeks in real estate. Inventory is officially at a new low, and the announcement of increased rates will lead to a very competitive spring buying season.

Thank you for checking out this email. If you have any questions, please don't hesitate to reach out.
Pat's Update

With rates on the rise, and inventory still somehow decreasing, it is going to be a brutally competitive season for buyers in 2022.

If you are thinking about selling, now is definitely the time to further explore the option. Multiple offers (sometimes well over the asking price) is the standard. Capital gains are lower than the past, so that's another benefit for sellers.

If buying is on your agenda, it's important to start preparing now for a competitive market. Many homes will be selling, but it's just a different market than what we've seen in the past. Rest assured, I have multiple strategies and techniques to greatly increase the likelihood of an offer being accepted (price escalation addendums, appraisal gap guarantees, personal letters, underwritten prequalification's, etc). The bottom line, it's still a great time to buy.
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Inventory Update

In December 2020, inventory was at 1,070,000 active properties listed on the market. This is down 16.4% from November 2020 (1,280,000). Compared with December of 2019 (1,390,000), inventory levels were down a marked 23.0%. This is a record-setting low since 1999, when this data began to be tracked.

Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Historically, six months of supply is associated with moderate price appreciation, and a lower level of months’ supply tends to push prices up more rapidly.

Mortgage Rates
The Fed is now pivoting to a less stimulative policy to cool the economy and combat spiking inflation caused by pent-up demand and supply chain disruptions. In November, consumer prices rose 6.8 percent from a year ago, its fastest pace in nearly 40 years. At the same time, the nation’s jobless rate fell to 4.2 percent, moving the job market closer to the Fed’s goal of maximum employment. The Fed projects that it will hike its key fed funds rate three times, in quarter-point increments, in 2022. It sees the fed funds rate, now pegged at 0 to 0.25 percent, climbing to 2.1 percent by the end of 2024.
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Listing of the Week
2856 Fairfax Rd, Cleveland Heights

Ideally located just minutes away from University Circle, this home provides over 2900 square feet of living space with a first floor primary suite and elegant finishes throughout. A circular driveway leads you to the front door. I'll be showing this several times this weekend, and would love to share this home with you!

Cheers!

Click here for the ---> Listing Link
Pat Barmann
216.990.5719